NEW YORK, Oct. 25, 2012 /PRNewswire/ -- VGTel, Inc. dba 360 Entertainment & Productions, Inc. (OTCQB: VGTL), CEO Peter Shafran is pleased to announce the Company has signed a letter of intent (LOI) with an Ohio-based company in the charitable video gaming industry. "The target company is exactly the type of company we've been searching for and the right kind of people who share our vision in this market," says Shafran. Shafran added, "This deal makes sense for both parties – it provides 360 with a proven model and a talented staff of gaming industry veterans and will provide the target company with even more opportunities and higher levels of support and product development." Counsel is preparing the definitive closing documents and the parties expect the transaction to close on or before November 15, 2012.
The Ohio-based target company has complete manufacturing capabilities, software licensing for raffle games, distribution and maintenance components in place with staffing and warehousing in Ohio. It also currently enjoys a five-year contract to place charitable video raffle kiosks in participating veterans and fraternal organizations' locations in Ohio, which will enable the expansion of raffle units and locations to meet and exceed more than 5,000 units in 1500+ locations. Proceeds from these video raffles will benefit the locations and the charities they support.
"Following this acquisition," Shafran explained, "360 intends to expand similar operations throughout Ohio and into other states where the regulatory and political environments are accommodating. We have already started exploring that process in earnest in several other states."
Under the terms of the LOI, the Company will acquire 100% of the target company, with management, operations and contracts in place. The target company will then operate as a wholly owned subsidiary of 360, in compliance with all governmental regulations. The acquisition of the target company is valued at greater than $25 million in cash and stock. The projected revenue to 360 in the first full 12 months after acquisition is in the range of $25,000,000 - $35,000,000, with expected EBITDA greater than $5,000,000 - $7,500,000, based on current revenue in the field. The projected revenues in years 2 through 5 (from Ohio-based operations alone) would appear to be in the range of $50,000,000 - $75,000,000, or better.
About 360 Entertainment & Productions
360 Entertainment & Productions is devoted to creating a multi-platform media company offering products in the electronic raffles and sweepstakes gaming industries. In addition, 360 Entertainment & Productions is seeking other opportunities in the rapidly growing electronic gaming industry in those venues and states where allowed by regulation. Our business outlook is based on a strategy of growing and building business units through investments and acquisitions.
For further information www.360entertainmentandproductions.com
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Forward Looking Statements:
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Peter Shafran, CEO
VGTel, Inc. dba 360 Entertainment & Productions
Phone: (360) 8-360-ENT
SOURCE VGTel, Inc. dba 360 Entertainment & Productions, Inc.